INFLUENCE OF STRATEGY TYPOLOGY ON PERFORMANCE OF FREIGHT FORWARDING COMPANIES IN KENYA

Karingithi Martin Gakere, Evans Aosa, Kennedy Ogollah, James Njihia

Abstract


Strategic management scholars have argued that firms in the same industry
have varying performance outcome attributed to several aspects such as
those registering exemplary performance embracing strategy typologies in
the face of intense market demands and rapidly changing competition to
survive and maintain superior performance. The aim of this study was to
establish the influence of strategy typology on performance of freight
forwarding companies in Kenya. The research was based on the industrial
organizational economic theory. Positivism research philosophy and
descriptive cross-sectional survey were used. Stratified random sampling was
applied to derive a study sample of 120 freight forwarding firms. Primary
data was collected using semi-structured questionnaires. Data was analyzed
using regression analysis. The results of the study showed that there was a
significant influence of strategy typology on organizational performance. The
finding supported the arguments that industrial organization economic
theory assumed that an organization’s performance and ultimate survival
depend on its ability to adapt to industry forces, even though the
organization has limited control. The study is set to enable management to
make informed decisions while planning for their medium and long-term
strategies. Strategies that are appropriately implemented enable the
organization to compete and record improved performance. The researcher
recommended replication of the study in different sectors and countries to
enhance understanding of the relationship between strategy typology and
organizational performance.



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